Kenya’s Crypto Revolution: Landmark VASP Bill Just One Step From Law!

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Kenya’s Parliament has passed the Virtual Asset Service Providers (VASP) Bill at its Third Reading, sending this game-changing digital asset regulation to President William Ruto for a stamp of approval. Oh, the drama!

Integrated Oversight and Licensing – Yawn, But Necessary!

Kenya is practically on the edge of history, waiting for that final tick from President William Ruto to make its first comprehensive law to regulate digital assets a reality. The National Assembly passed the VASP Bill at its third reading last week, and now, it’s a waiting game. The bill, when it becomes law (and it probably will, unless someone decides to start a revolution), will give the country’s rapidly growing crypto economy a proper, legal framework. Move over, the rest of Africa, Kenya is here to be the boss of digital finance regulation.

The bill’s main mission? Protect consumers, stop financial scams, and provide much-needed legal clarity for all those crypto businesses buzzing around in Kenya.

Here’s the kicker: unlike previous proposals to create a whole new shiny regulator just for crypto, the VASP Bill says “Nah, let’s give the power to the existing regulators.” So, get ready for the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) to be your new best friends in the crypto world.

Kimani Kuria, chairman of the Finance and National Planning Committee (sounds important, right?), called this bill a “landmark moment” for Kenya’s financial ecosystem. We don’t know if he’s talking about crypto or the fact that he just got his moment in the spotlight, but sure, let’s go with it.

Oh, and if the CBK and CMA somehow fail, don’t worry! The National Treasury might decide to create a whole new regulator…because why not? Let’s keep things interesting.

Here’s what the bill says for businesses: If you’re offering virtual-asset services, you must get a license. Only companies limited by shares (local or foreign) will make the cut. So, if you’re an unlicensed operator? Not today, Satan. Not today.

But wait, there’s more! The law is extra strict with operational safeguards for Virtual Asset Service Providers (VASPs). These businesses will need to keep client assets safe and secure, segregated from their own. And, oh, they’ll need insurance, too. Plus, they’ll have to open up bank accounts in Kenya. Because of course, who needs to run a business without a solid bank connection?

The VASP Bill also follows a fiscal shift in the Finance Act 2025, which switched the troublesome 3% digital asset tax on asset value to a 10% excise duty on platform service fees. I mean, we all know it’s about the money, honey.

If this Bill gets signed into law, Kenya will finally recognize virtual assets like a grown-up. They’ll join other digital asset leaders like South Africa, Nigeria, and Mauritius, making the entire continent feel slightly envious.

FAQ 💡

What’s the latest on Kenya’s crypto regulation? Kenya’s National Assembly passed the VASP Bill, which is now just waiting for President Ruto to give it the green light. Could this be Kenya’s moment to shine? Maybe!

Which Kenyan regulators are in charge of crypto? It’s the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA). The good news: no need for another bureaucratic mess of a new regulator. You’re welcome!

What do VASPs need to do to comply with the new rules? They need a license, insurance, and to keep client funds nice and separate from their own. Basically, be responsible adults.

How does the new law affect crypto taxes? Well, the 3% tax on digital asset appreciation is gone, replaced by a 10% excise duty on the fees crypto platforms charge. So, Kenya is still collecting its share, but now it’s more about service fees than the assets themselves. Clever, right?

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2025-10-14 10:58